Local businesses vs Generic business rejection criterion

Since @NianticGiffard commented that "Gyms/Dance studios/etc. business promoting exercises need to be reviewed as a place of exercise which is an eligible spot," there has been a lot of back and forth about just how the rejection criterion "A generic business, chain, or franchise that is not locally unique" applies to these nominations. Some believe that the rejection criterion only applies to chain and franchise businesses and does not apply to locally owned businesses. Others argue that any business that meets the eligibility criteria is exempt from the "generic business" rejection criterion regardless of whether it is a locally owned business, chain, or franchise. To what extent does this rejection criterion apply to business nominations? And if the criterion only applies to chain or franchise businesses, shouldn't the "generic business" part be removed?
Comments
As an example of someone who thinks simply meeting the eligibility criteria makes a business nomination exempt from the rejection criteria.
https://community.wayfarer.nianticlabs.com/discussion/30343/restaurants